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With the Euro crisis seemingly dealt with the remainder of the week has seen many of the ‘risk on’ trades outperform. But the western world is not out of the woods yet, with the credit rating of France in question and the US having come up against its own deadline for budget cuts, the uncertainty has far from left the markets. The deal for holders of Greek bonds to take a 50% haircut and the leveraging of the EFSF are not yet sure things. With the write down needing to be voluntarily in order to prevent a default, the CDS market could be roiled due to the ineffectiveness of the use of these untested vehicles. The leveraging of the EFSF is another cause of concern, as the causes for the fund to take on more leverage would be the same causes that make the underlying countries less able to afford backing the fund.